Okay, great. So we’re going to get restarted with Honeywell. On stage we’ve got Tom Szlosek, VP of Finance and Elena Doom, Investor Relations and Elena congratulations on the big ring.

Elena Doom

Thanks, Nigel.

Nigel Coe - Morgan Stanley

So Thomas you have got a presentation, so take it away.

Tom Szlosek

Yes, great. Thanks. Nigel thanks for having Elena and I here. We are really happy to be representing Honeywell. Since I started in my role in early April, I had a chance to interact with a number of you. I look forward to hearing what’s on your mind today. So like Nigel said, I got a few prepared slides, I will quickly go through them. First the standard, we do have forward-looking statements in here. The actual results could materially differ. I encourage you to look at our risk base disclosures that are on our 10-K and other information on our website.

We’re coming off a strong first half, 14% EPS growth. That’s 9% when you adjust to normalize our tax rate to the full year 26.5% tax rate in a fairly, a flat type of growth environment, it shows 1% there reported, but actually organically flat. In terms of the outlook for the rest of the year, we are reaffirming our guidance for the third quarter and the second-half. That does include the impact of the Intermec acquisition that you may have seen closed this morning.

And in terms of our long-term targets, we continue to be on track with those who actually be able to hit the or expect to be able to hit the margin portion of the long-term targets a year early and I will show you little bit more on that in a minute.

In terms of our portfolio, Honeywell offers a diverse portfolio. Our businesses are in spaces that take advantage of trends around safety, security, energy efficiency, productivity of our customers, globalization of our customers. We are in over a hundred countries in the world. The non-U.S. piece of our business continues to grow. As you know we made some organizational changes over the last year and half to -- and put in a President in high growth regions to ensure we’re getting the resources and the investments in those areas.

Then from an SBG perspective as you know we’re in four businesses that give us good exposure both long cycle and short cycle. So how did those businesses perform? This is the first half numbers I think you’ve seen in these. I call your attention to the right hand column in particular. Yeah, we’d all love better markets and we think better days are ahead from a market perspective. But even with the flat sales growth, we’re able to improve segment profit by 5%.

We are able to drive the margins up 60 basis points. And with no sales growth, that really is a reflection of all the things that we continue to talk about, the Honeywell operating system, the Velocity Product Development, Functional Transformation, OEF, all of those initiatives result in opportunities for restructuring. And to the extent we have restructuring funding available and we fund it and we execute those projects you see the result, the margin rate improvement.

In addition, on net income and EPS even in better markets, we’d be pretty proud of 15%, 14% increases there. And then from a cash flow perspective, we continue to drive free cash flow in line with the earnings growth. A little bit of update on our portfolio, we’re seeing good strength in the Aerospace aftermarket both on ATR and BGA side. EOP continues to do well for us in that oil and gas space as well as HPS.

Europe has also been very good for us. And surprisingly our exposure there is on turbo and on the ACS short cycle businesses we’re getting nice traction there. China is improving significantly from the first half. So we're happy with what we’re seeing there as well. From a -- from the portfolio – from the stable part of the portfolio, we have the ACS -- well first of all that the Aerospace business is on the OE side are doing very well. Elena are we changing the slides? Okay.

I think we might have a slight glitch with the slides, but let me keep talking about the …

Nigel Coe - Morgan Stanley

Are these the internal slides?

Tom Szlosek

Yes, I think these are the internal slides, no but it’s fine. We …

Nigel Coe - Morgan Stanley

Right. You can go.

Tom Szlosek

(Indiscernible) a word with this. On the Aerospace, on the OE side, we’re seeing that mid single digit growth. So both again ATR and on BGA, the residential businesses and ACS across the rest of the world are doing well and then from a challenge perspective we continue to see challenges in Defense and Space. As you know the U.S government on Defense side is spending 7% to 8% less in terms of funding than they have in the past and we’re calling about 4% on declining revenue in our portfolio for the year. As well Advanced Materials we’re seeing a little bit of slowdown there as you’ve seen over the course of the year. But we’re seeing some signs of brightening; the comps get a little bit easier as we head into 2014.

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